Refer to the Information Provided in Figure 16

question 186

Multiple Choice

Refer to the information provided in Figure 16.1 below to answer the questions that follow. Figure 16.1
-Refer to Figure 16.1. Which of the following causes the ppf to shift from ppf₂ to ppf₁?

• A) technological progress
• B) a decrease in capital stock
• C) an increase in the labor force
• D) an increase in per capita income

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Definitions:

Cost Curves

Graphs that depict how the costs of production vary with changes in output, including total cost, average cost, and marginal cost curves.

Profit-maximizing

The method or tactic of modifying output and setting prices to maximize profits.

ATC

It refers to dividing the entire cost of production by the number of units produced to get the Average Total Cost.

AVC

The variable cost for each unit of production, known as Average Variable Cost.